Chrysler to add 1,250 jobs (and they're not in China)

A third shift will be added at Warren (Mich.) Truck to build more of this updated 2013 Ram 1500 pickup.(Photo: Chrysler)

Story Highlights

Chrysler will add the new jobs at three plants in and around Detroit

CEO Marchionne says is more proof government auto bailout was worth it

Expansion will let company build more V-6 engines, Ram pickups

Chrysler and Fiat CEO Sergio Marchionne confirmed today in Detroit that Chrysler plans to invest $240 million and hire 1,250 workers at three Michigan plants so it can ramp up production of its engines and Ram pickups.

"Today is another important milestone in living up to the commitment we made more than three and a half years ago to our employees, this city, this region and our country to transform this company," Marchionne said in a statement.

Marchionne also said it is more proof that the federal government's bailout of Chrysler in 2009 was a good decision.

"Those who still doubt that we would use the second chance taxpayers granted to us to build something better and long lasting…only have to come here and see for themselves how seriously we have taken our responsibility," Marchionne said today at Chrysler's engine plant in Detroit.

The Obama Administration auto industry bailout was a heated issue in the recent presidential campaign. GOP hopeful Mitt Romney opposed the government-run reorganizations -- and late in the campaign claimed (incorrectly) that Chrysler, now controlled by an Italian company, would be moving Jeep production to China.

In May 2011, Chrysler repaid $9.3 billion in loans from the U.S. and Canadian governments six years earlier than required. That sum does not include the $1.3 billion provided by the Bush administration to the automaker before it filed for bankruptcy.

All of the jobs announced today for Michigan will be new jobs, the company said, because Chrysler doesn't have any workers who are laid off.

The investments, first reported by the Free Press, include:

-- $198 million at Chrysler's Mack Avenue Engine I plant in Detroit where Chrysler will add about 250 workers to build its V6 Pentastar engine.

-- $40 million at Chrysler's Trenton North engine plant south of Detroit to build Pentastar and Tigershark four-cylinder engines.

-- The addition of a third crew at the Warren Truck plant north of Detroit to build more Ram 1500 pickups.

With this announcement, Chrysler's investments at it U.S. plants since it emerged from Chapter 11 bankruptcy in 2009 now tops $4.75 billion. The company also has added nearly 6,000 hourly jobs in the U.S.

Tracy Handler, principal at IHS Automotive, said Chrysler likely needs more engines for the additional pickups it will produce in Warren. The Ram 1500 pickup, which went into production in September, offers the Pentastar V6 engine and two V-8s.

"They really got out ahead of GM and Ford, and are kind of hitting the market at the same time that we are possibly seeing growth in the housing market," Handler said.